It’s time for your Daily Hit of cannabis financial news for May 24, 2021.
On The Site
4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) released its financial results for the first quarter ended March 31, 2021 with total revenues coming in at $22.9 million versus last year’s $12.6 million for the same time period. Net losses increased from $7.7 million in 2020 to $11 million for the first quarter of 2021. 4Front also reiterated its fiscal year guidance for Pro Forma Revenue of $170 -180 million and Adjusted EBITDA of $40 -50 million.
The company noted that pro forma revenue increased 26% to $31.4 million in the first quarter versus $25.0 million in the fourth quarter. 4Front said that retail sales and product adoption exceeded internal expectations. This increase was attributed to higher sales from the two Massachusetts dispensaries following the start of adult-use sales in the second half of 2020, and a very strong launch from the Calumet City dispensary that opened in December 2020.
Patient-first biotech company Enveric Biosciences (NASDAQ: ENVB) is buying MagicMed Industries Inc., a privately-held biotechnology company focused on creating a library of novel derivative psychedelic molecules such as psilocybin, N,N-dimethyltryptamine (DMT) and other molecular derivatives with applications across multiple indications, in an all-stock transaction. The deal has an approximate value of $30 million.
Shareholders of MagicMed will receive 9,946,969 shares of common stock of Enveric, which recently closed at $2.72. Plus, warrants, options, and restricted stock units to acquire an additional 9,039,882 shares of common stock of Enveric. The current Enveric shareholders will own approximately 63.4% of the combined company’s common stock. Additionally, Enveric will receive approximately C$4 million in cash from the MagicMed Treasury. Dr. Joseph Tucker will be appointed Chief Executive Officer and David Johnson, the current Chief Executive Officer, and Chairman will be appointed Executive Chairman.
In Other News
Aurora Cannabis Inc. (NASDAQ: ACB)announced that it has completed the transfer of its stock exchange listing to The Nasdaq Global Select Market from the New York Stock Exchange after the market close today. The company’s common stock will begin trading as a Nasdaq-listed security at market open on May 25, 2021 and will continue to be listed under the ticker symbol “ACB.” This transition does not impact the Company’s primary listing on the Toronto Stock Exchange (TSX: ACB). Aurora shareholders DO NOT need to take any further action.
TILT Holdings (TLLTF) announces the expansion of its partnership with Airo Brands, Airo is one of Jupiter Research’s earliest customers, licensing exclusive Jupiter products since 2016 and collaborating on proprietary inhalation technologies.Through this broader partnership with TILT and its subsidiary Standard Farms PA, Airo will look to enter the Pennsylvania market by early summer.Jupiter will continue to provide its proprietary hardware for Airo’s AiroPro and AiroX devices, as well as AiroPod cartridges, while Standard Farms will produce and fill high-quality cannabis oil for Airo’s AiroPod cartridges to be sold at retailers across Pennsylvania, pending regulatory product approval.The partnership will help meet the state’s demand for quality vape products, which is the second-largest product category in the state with 35% market share.